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First Horizon Free Cash Flow per Share

: $2.92 (TTM As of Jun. 2021)
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First Horizon's Free Cash Flow per Share for the three months ended in Jun. 2021 was $-0.12. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2021 was $2.92.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of First Horizon was -89.40% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the FCF Growth Rate using Free Cash Flow per Share data.

The historical rank and industry rank for First Horizon's Free Cash Flow per Share or its related term are showing as below:

During the past 13 years, First Horizon's highest 3-Year average Free Cash Flow per Share Growth Rate was 341.70% per year. The lowest was -196.30% per year. And the median was 8.20% per year.


First Horizon Free Cash Flow per Share Historical Data

The historical data trend for First Horizon's Free Cash Flow per Share can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

First Horizon Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Free Cash Flow per Share
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.50 -0.34 0.57 2.47 0.26

First Horizon Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Free Cash Flow per Share Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.83 0.39 0.76 1.89 -0.12

First Horizon Free Cash Flow per Share Calculation

Free Cashflow per Share is the amount of Free Cashflow per outstanding share of the company's stock.

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Note: GuruFocus does not calculate Free Cash Flow Per Share when Capital Expenditure is 0.

First Horizon's Free Cash Flow Per Share for the fiscal year that ended in Dec. 2020 is calculated as

Free Cash Flow Per Share(A: Dec. 2020 )
=(Cash Flow from Operations+Capital Expenditure)/Shares Outstanding (Diluted Average)
=(172+-58)/433.954
=114/433.954
=0.26

First Horizon's Free Cash Flow Per Share for the quarter that ended in Jun. 2021 is calculated as

Free Cash Flow Per Share(Q: Jun. 2021 )
=(Cash Flow from Operations+Capital Expenditure)/Shares Outstanding (Diluted Average)
=(-49+-16)/556.763
=-65/556.763
=-0.12

Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.92

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


First Horizon  (NYSE:FHN) Free Cash Flow per Share Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Dec20, First Horizon's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Dec20)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=0/17.28+0
=0.00 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.


First Horizon Free Cash Flow per Share Related Terms

Thank you for viewing the detailed overview of First Horizon's Free Cash Flow per Share provided by GuruFocus.com. Please click on the following links to see related term pages.


First Horizon Business Description

First Horizon logo
Industry
Financial Services » Banks NAICS : 522110 SIC : 6021
Address
165 Madison Avenue, Memphis, TN, USA, 38103
First Horizon Corp is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee. The regional bank is responsible for roughly 65% of its revenue, while capital markets make a 25% contribution. The remainder is split between the firm's non-strategic (wind-down) and corporate operations. First Horizon concentrates on offering a variety of banking products mainly in its home state, where it has the second- largest deposit franchise with a 13% deposit market share.
Executives
Casbon John N director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Barton Harry V Jr director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Maples Ricky E director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Kemp Sr James Michael director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Reed Colin V director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: REED COLIN V a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Subramaniam Rajesh director 165 MADISON AVE MEMPHIS TN 38103
Palmer Vicki R director PO BOX 723040 ATLANTA GA 30339
Stewart Cecelia D. director 8410 W. BRYN MAWR, SUITE 700 CHICAGO IL 60631
Compton John C director 700 ANDERSON HILL ROAD PURCHASE NY 10577
Fenstermaker William H director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Davidson Wendy P director 2210 WEST OAKLAWN DRIVE SPRINGDALE AR 72762
Shea E Stewart Iii director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Sugranes Rosa director 2975 N.W. 77TH AVE DORAL FL 33132
Burdick Kenneth A director 6705 ROCKLEDGE DR SUITE 900 BETHESDA MD 20817
Taylor R Eugene director BANK OF AMERICA CORP 100 NORTH TRYON ST NC1-007-57-01 CHARLOTTE NC 28255

First Horizon Headlines

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